+ A
A -
Satyendra Pathak
Doha
The ongoing expansion of Woqod’s retail fuel station network should support its fuel and non-fuel revenue growth gradually, QNB Financial Services (QNBFS) has said in a company report released on Thursday.
In the medium- to long-term, the report said, the planned expansion of Qatar Airways is likely to be the foremost long-term driver for Woqod’s bottom-line growth.
“We will be revising our estimates and target price, once we have a clearer understanding on Woqod’s sales volumes and margins,” the report said.
Highlighting the better than expected results by Woqod in the third quarter of 2020, it said, “Woqod posted net income of QR158.6 million in the third quarter of 2020, up 259.7 percent compared to the previous quarter and our net income estimate of QR95.9 million.”
“The company’s earnings per share (EPS) amounted to QR0.16 in the third quarter of 2020 as compared to QR0.33 in the same quarter last year. In the first nine months of 2020, Woqod’s net profit stood at QR428.73 million as compared to QR871.8 in the same period last year. EPS amounted to QR0.43 in the first nine months of 2020 as compared to QR0.88 in the same period last year,” the report said.
“Gross profit was above our estimate, which is attributable to higher margins. During the third quarter of 2020, we also think the local diesel and gasoline sales volumes recovered notably against the second quarter. Gasoline sales recorded slight positive growth against the same period last year,” it said.
The company posted QR193.6 million in gross profits in the third quarter of 2020 against QR9.8 million in the second quarter of 2020 and QR441.3 million in the third quarter of 2019. Due to relatively higher economies of scale benefits, gross margin rose to 6.3 percent in the third quarter of 2020, up from 0.5 percent in 2Q2020 and 5.9 percent in the third quarter of 2019. Despite the gradual lifting of coronavirus-related counter-measures, the report said, air traffic was still highly restricted in most countries during the third quarter, leading Woqod to experience lower demand for jet fuel.
Woqod’s retail non-fuel revenue, including Sidra sales, increased by 11 percent year-on-year (YoY) in the first nine months of 2020 driven by the new stations and higher footfall in C-stores.
Since the first half of 2020, the report said, the number of Woqod’s retail gas stations reached 106 as of October 15 from 90 at the end of September in 2019.
Doha
The ongoing expansion of Woqod’s retail fuel station network should support its fuel and non-fuel revenue growth gradually, QNB Financial Services (QNBFS) has said in a company report released on Thursday.
In the medium- to long-term, the report said, the planned expansion of Qatar Airways is likely to be the foremost long-term driver for Woqod’s bottom-line growth.
“We will be revising our estimates and target price, once we have a clearer understanding on Woqod’s sales volumes and margins,” the report said.
Highlighting the better than expected results by Woqod in the third quarter of 2020, it said, “Woqod posted net income of QR158.6 million in the third quarter of 2020, up 259.7 percent compared to the previous quarter and our net income estimate of QR95.9 million.”
“The company’s earnings per share (EPS) amounted to QR0.16 in the third quarter of 2020 as compared to QR0.33 in the same quarter last year. In the first nine months of 2020, Woqod’s net profit stood at QR428.73 million as compared to QR871.8 in the same period last year. EPS amounted to QR0.43 in the first nine months of 2020 as compared to QR0.88 in the same period last year,” the report said.
“Gross profit was above our estimate, which is attributable to higher margins. During the third quarter of 2020, we also think the local diesel and gasoline sales volumes recovered notably against the second quarter. Gasoline sales recorded slight positive growth against the same period last year,” it said.
The company posted QR193.6 million in gross profits in the third quarter of 2020 against QR9.8 million in the second quarter of 2020 and QR441.3 million in the third quarter of 2019. Due to relatively higher economies of scale benefits, gross margin rose to 6.3 percent in the third quarter of 2020, up from 0.5 percent in 2Q2020 and 5.9 percent in the third quarter of 2019. Despite the gradual lifting of coronavirus-related counter-measures, the report said, air traffic was still highly restricted in most countries during the third quarter, leading Woqod to experience lower demand for jet fuel.
Woqod’s retail non-fuel revenue, including Sidra sales, increased by 11 percent year-on-year (YoY) in the first nine months of 2020 driven by the new stations and higher footfall in C-stores.
Since the first half of 2020, the report said, the number of Woqod’s retail gas stations reached 106 as of October 15 from 90 at the end of September in 2019.
